Ambuja Cements Reports 364% YoY PAT Increase in Q2 FY26
Filing Summary
Ambuja Cements Limited announced a significant increase in its Q2 FY26 performance, with a 364% year-on-year rise in Profit After Tax (PAT) to Rs. 2,302 crore. The company achieved its highest-ever quarterly revenue of Rs. 9,174 crore, marking a 21% increase year-on-year. Cement sales volume reached 16.6 million tonnes, up 20% from the previous year. Operational improvements included a 32% increase in EBITDA per tonne to Rs. 1,060. The company remains debt-free with a net worth of Rs. 69,493 crore and maintains the highest credit ratings from Crisil.
Ambuja Cements Limited has reported a substantial improvement in its financial performance for Q2 FY26. The company’s Profit After Tax (PAT) increased by 364% year-on-year, reaching Rs. 2,302 crore. Revenue from operations for the quarter was the highest ever recorded in a Q2 series, amounting to Rs. 9,174 crore, a 21% increase compared to the same period last year. Cement sales volume also reached a new high of 16.6 million tonnes, reflecting a 20% year-on-year growth.
The financial highlights for the quarter include a 32% year-on-year increase in EBITDA per tonne, which stood at Rs. 1,060. The company’s net worth increased by Rs. 3,057 crore during the quarter, maintaining a debt-free status with the highest credit ratings of Crisil AAA (Stable) and Crisil A1+. Earnings per share (EPS) for the quarter rose to Rs. 7.2, up by 267% year-on-year.
Operationally, Ambuja Cements has increased its FY28 target capacity by 15 million tonnes per annum (MTPA), from an earlier target of 140 MTPA to 155 MTPA. This capacity increase will be achieved through debottlenecking at a lower capital expenditure of USD 48 per tonne. The company is also installing 13 blenders at its plants over the next 12 months to optimize the product mix and increase the share of premium cement. Additionally, plant logistics infrastructure improvements are expected to increase existing capacity utilization by 3% over 24 months.
The company has initiated a trial run for a new 4 MTPA kiln line at Bhatapara, Chhattisgarh, and operationalized a 2 MTPA grinding unit at Krishnapatnam. An additional 7 MTPA capacity is expected to become operational at three other locations in Q3 FY26. Ambuja Cements has also commissioned 200 MW of solar power, increasing its renewable energy capacity to 673 MW, with plans to reach 900 MW by the end of the year.
Ambuja Cements is part of the diversified Adani Portfolio and is the 9th largest building materials solutions company globally. The company has launched the Cement Intelligent Network Operations Centre (CiNOC) to integrate an AI layer into its operations, aiming to enhance efficiency and productivity. Strategic partnerships have been formed with entities like CONCOR and CREDAI to gain competitive advantages in logistics and market engagement.
In the broader market context, the company has benefited from recent GST reforms, which reduced the GST rate on cement from 28% to 18%. This reduction has been communicated widely and the benefits have been passed on to customers. The company has also made significant strides in sustainability, with initiatives in water conservation and renewable energy.
Ambuja Cements Limited is a leading player in the building materials sector, focusing on sustainable practices and capacity expansion. The company is committed to achieving net-zero emissions by 2050 and has set science-based targets validated by the Science Based Targets initiative (SBTi). It continues to invest in renewable energy and innovative technologies to enhance operational efficiency and reduce environmental impact.